| dc.description.abstract | As organizations redirect valuable internal skills and capabilities to high value added activities, the sourcing debate has moved from whether to outsource, to what and how to outsource. Many organizations are working towards the concept of core organization dealing with core or strategic activities, surrounded by a network of smaller companies and individuals providing a range of supporting ancillary services on a contracted basis.Emperical studies have shown that one important way to cut development time is to rely on external sourcing and subcontracting instead of dedicated staffs, especially where product market are uncertain. The popularity of outsourcing and the virtual corporation reflect the glowing recognition that it is difficult to perform all activities as productively as specialists. The purpose of this study was therefore to determine factors that influence business process Outsourcing services/activities by Horizon Call Centre, Nairobi Kenya its benefits and challenges.
Business outsourcing, also known as business process outsourcing (BPO), refers to this type of arrangement where it involves one business handing over its administrative duties to another business or professional. It also refers to contracting of a specific function or business task to a third party service provider. There are various factors that influence companies to outsource. These factors includes enabling existing staffs to concentrate on core activities on organizational specialization, focusing on achieving key strategic objectives, Lowering or stabilizing overhead costs and thereby gaining cost advantage over the competition . BPO provides quantifiable benefits through improved efficiencies, low overheads, reduced payroll and fewer capital investments. Crucially, outsourcing can provide companies with great capacity for flexibility, especially in the purchase of rapidly developing new technologies, fashion goods or the myriad component of complex system. With the capability to offer customized services to suit the needs of their customers, the organizations that outsource benefit from increased customer satisfaction and goodwill that go a long way in increasing their brand value.
Outsourcing does encounter some pitfalls and challenges. First of all, outsourcing usually reduces company’s control over how certain services are delivered, which in turn may raise the company’s liability exposures. Another challenge with outsourcing comes from operation managers who embark on a re-evaluation and comparison of internal operations with foreign options must be aware of the risks involved in dealing with firms that operate in different legal and cultural environments. Problems can rise regarding confidentiality, security and time schedules. The coordination and supervision required when a company outsources activities can also be a challenge. Despite the above pitfalls, outsourcing has had a positive effect on the level of performance; key amongst this is enhancement of cost estimation. The other positive results registered with outsourcing include enhanced growth in market share, positive returns on asset, increased staff morale and satisfaction, increased customer satisfaction, increased supplier satisfaction, increased product availability, positive effect on return on investment and reduced field complaints. | en |
